EXERCISE 7-7 Precision Labs has two employees. The following information was taken from its individual earnings records for the month of September. Determine the missing amounts assuming that the Social Security tax is 6.2 percent, the Medicare tax is 1.45 percent, and the state income tax is 20 percent of the federal income tax. Assume that the employees are married and have one withholding allowance. All earnings are subject to Social Security and Medicare taxes. Round amounts to the nearest penny. Brown Ringness 2$ Total Regular earnings Overtime earnings $ 3,500.00 24 120.00 Total earnings $3,646.00 2$ $ 312.08 24 Federal income tax withheld 2$ %24 State income tax withheld 35.18 Social Security tax withheld Medicare tax withheld 226.05 169.76 52.87 39.70 Charity withheld Total deductions 35.00 97.00 $ 688.42 24 517.53 24 Net pay 2$ $ 2,220.47 24

EXERCISE 7-7 Precision Labs has two employees. The following information was taken from its individual earnings records for the month of September. Determine the missing amounts assuming that the Social Security tax is 6.2 percent, the Medicare tax is 1.45 percent, and the state income tax is 20 percent of the federal income tax. Assume that the employees are married and have one withholding allowance. All earnings are subject to Social Security and Medicare taxes. Round amounts to the nearest penny. Brown Ringness 2$ Total Regular earnings Overtime earnings $ 3,500.00 24 120.00 Total earnings $3,646.00 2$ $ 312.08 24 Federal income tax withheld 2$ %24 State income tax withheld 35.18 Social Security tax withheld Medicare tax withheld 226.05 169.76 52.87 39.70 Charity withheld Total deductions 35.00 97.00 $ 688.42 24 517.53 24 Net pay 2$ $ 2,220.47 24

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 12EB: Reference Figure 12.15 and use the following information to complete the requirements. A. Determine...

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CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL TAXES Portions of the payroll register for Barneys Bagels for the week ended July 15 are shown below. The SUTA tax rate is 5.4%, and the FUTA tax rate is 0.6%, both of which are levied on the first 7,000 of earnings. The Social Security tax rate is 6.2% on the first 118,500 of earnings. The Medicare rate is 1.45% on gross earnings. Calculate the employers payroll taxes expense and prepare the journal entry to record the employers payroll taxes expense for the week ended July 15 of the current year.
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